China’s sharing economy hits more than a few potholes

Failures mount up for an industry that was estimated to be worth US$605m

Gone is the new economy dictum rolled out by Xiaomi founder Lei Jun that “even a pig can flyif it stands at the centre of a whirlwind”. Now, it appears that companies which were thriving in China’s sharing economy are struggling for survival at the end of drama-filled year.

To put it bluntly, more than 20 companies involved in this fledgling sector have either folded or suspended their services, according to China’s mainland media.